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The president of Wheels Group and the founder and major shareholder of the company are evaluating alternatives for doubling the company's revenues over the next five years. They must decide between two competing growth strategies: an asset-based growth strategy and a nonasset-based growth one. Complicating the decision is the fact that approximately 75% of the company's revenues are currently derived from nonasset-based activity. Students can explore issues associated with developing, evaluating, and implementing business strategy within the third-party logistics industry.

On August 14, 2003, an electricity blackout cascaded throughout the northeastern United States and Canada. Describes the structure, technology, and economics of the electric utility industry and how gradual deregulation beginning in the 1970s placed unprecedented, and unintended, stress on the transmission grid. Discusses the government's role in trying to mitigate congestion along transmission lines and facilitate improved planning and operational coordination through the establishment of independent system operators and regional transmission organizations. Also describes the recent financial performance of the electricity industry, the potential costs of modernizing the U.S. transmission infrastructure, and the role of political contributions in shaping regulation.

As the leading content delivery network, Akamai helps Internet companies deliver Web site content to end users with fewer delays and lower costs. Describes the strategic management challenges facing Akamai in early 2004. The company is poised to offer its next generation of services for enterprise customers, which will allow them to run Internet-enabled applications ("Web services")--on demand, with minimal capital investment--from Akamai's network of 15,000 servers located in ISP facilities at the Internet's "edge"--close to end users. Many large enterprise software companies have developed proprietary platforms for creating and managing Web services. Akamai must decide which of these software companies would be attractive partners and whether it can and should remain uncommitted to a platform as it helps customers deploy Web services. A rewritten version of an earlier case.

In March 2002, Singapore Airlines (SIA), recognized internationally for quality, profitability, and management, was facing difficult operating conditions. Dr. Cheong Choong Kong, deputy chairman and CEO, considered how he and his management committee would respond to the forces of globalization, regulatory adjustment, and the impact of terrorist attacks in America on the airline and the industry. Their challenge: to position the airline for continued growth in a globalizing industry while maintaining the airline's loss-free record. The airline's continuing challenges would stretch SIA's people far beyond the demands of its previous history. Was the company's strategy right for the more turbulent times ahead, and was the organization durable and flexible enough to ensure its success?

This technical note examines types of organizational crisis and five phases through which nearly all crises pass. Students are encouraged to move from a mindset that manages crisis to one that generates crisis leadership. Between corporate fraud, scandals, ethical dilemmas, mismanagement, national disasters, and workplace violence, organizational crises have become all too common in recent years. The corporation's reputation with stakeholders, financial well-being, and survival are all at stake. While the actual crisis situation itself is troublesome for the firm (e.g., faulty product leading to a product recall), often the real potential damage to an organization's reputation results from the (mis)/management of the crisis issue.

This case series (see also the B [UV3535], C [UV3536], D [UV3537], E [UV3538], F [UV3546], and G [UV4339] cases) focuses students on the boom-and-bust behaviors in the Northern Forest sawmill industry. Stakeholders, from landowners to sawmill owners to government officials to environmentalists, all want to make sure that the overall demand for saw logs, as driven by sawmill capacity, does not exceed the rate at which the trees are growing. They do not want sawmill demand to "overshoot" the productive capacity of the forest resource, a classic problem in renewable-resource economies that the region had experienced approximately a century earlier. Students are called upon to use system-thinking skills (analysis of reference modes of behaviors, causal-loop mapping, and stock-flow mapping) in creating their causal hypotheses of the underlying system structure. Students are asked to design system-structure policies to help sustain both the industry and the natural resources of the region.

This case examines NBC's decision to bid on Major League Baseball's contract. The issues relate to the cost of the contract and whether it helps NBC meet both its profit targets and strategic goals. The case includes a pricing model to help the student determine whether to bid or not.

In the summer of 2002, the International Rivers Network (IRN), an environmental NGO located in Berkeley, California, was engaged in what appeared to be the last hours of a three year campaign to stop a $582 million dam and hydropower project at Bujagali Falls in Uganda. The final piece of the financing puzzle was about to be put in place as the World Bank was set to approve a $250 million loan guarantee for the project. Although the project would have some adverse environmental and social impacts, IRN contended that the power deal between the government of Uganda and AES was the real problem. As IRN saw it, the cost of the project was too high and Ugandans would bear most of the risk, which would add to the country's debt burden. However, without the power purchase agreement, which remained undisclosed despite requests for it to be made public, IRN had little economic data on the project to bolster its argument. Still, there were compelling reasons, such as economic development and poverty alleviation, for the Ugandan government to go ahead with the deal it had with AES, the project sponsor. AES, with its social mission and reputation for delivering low-cost energy to the world, seemed like the ideal sponsor.

Tom Bird and Ken Saxon are two young MBAs who buy a company after graduation. Chronicles their efforts as they grow the company from $600,000 in sales to $5 million. The two confront the issue of hiring succession management.

What do international stocks contribute to the portfolio of a U.S. investor? How do currencies interact with stock price movements in determining the benefits of international diversification? This case helps students compare the risks and returns of foreign stock markets with each other and with the U.S. market and to examine the risks and returns of international diversification. Students must calculate returns, adjust for currencies, derive correlations, and map efficient frontiers based on raw data. To obtain executable spreadsheets (courseware), please contact our customer service department at [email protected].

Presents an easy introduction to time-driven activity-based costing (ABC) that allows students to build a simple ABC model of order profitability. Midwest's time-driven ABC approach is based on two categories of parameter estimates. The first is the cost per hour of employees performing diverse tasks, such as order-entry operators and delivery personnel performing desktop deliveries. The second is the estimated time required for employees to perform each type of task (manual vs. electronic orders, nearby vs. distant deliveries). Students apply the time-driven ABC model to five representative orders to estimate order profitability based on a far more accurate portrayal of the cost of processing and delivering orders. Stimulates a discussion about the actions, such as pricing and process improvements, to enhance the profitability of orders and also how to report and manage the cost of unused capacity. A rewritten version of an earlier case.

Samsung's global marketing director is assessing how to build the global brand reputation of the company further and upgrade the company's worldwide brand image. To show how to build a global brand.

Shurgard, a U.S.-based firm that rents storage facilities to consumers and small businesses, is considering financing options for rapid expansion of its European operations. Five years after entering Europe, Shurgard Europe has opened 17 facilities in Belgium, France, and Sweden. Along the way, Shurgard has encountered skepticism from both European consumers and investors about the unfamiliar self-storage concept and internal debates on how much to adapt the U.S. business model to European lifestyles. Wall Street analysts also do not value the impact that the European expansion could have on Shurgard's U.S. performance as a publicly traded Real Estate Investment Trust (REIT). As an alternative, to finance this expansion, Shurgard received a proposed deal from a consortium of banks and other investors where they would provide private equity financing spaced over the next few years plus a line of credit. In return, the investors would receive a large share of Shurgard's equity and control of its board, which could force a public offering in less than two years. The decision focuses on whether Shurgard Europe should accept the conditions and valuation of the proposed deal or seek another deal at a later point in time. Students must assess whether the self-storage business model can deliver the growth rate in Europe that the company has promised his potential investors. Involves calculating some basic estimates of the company's value from financial exhibits (enterprise value using a pEBITDA multiple). Main focus is to assess this as an entrepreneurial venture. Students do not need to be familiar with REITs.

Richard Breeden proposed corporate governance reforms for MCI. Breeden is a former chairman of the SEC who was a court-appointed "corporate monitor" for the troubled company (formerly WorldCom). The company must adhere to the proposals unless excused by a court order.

How should a multinational firm manage foreign exchange exposures? Examines transactional, translational, and competitive exposures. Describes General Motors' corporate hedging policies, its risk management structure, and how accounting rules impact hedging decisions. Although the overall corporate hedging policy provides a consistent approach to the foreign exchange risks that General Motors must manage, there are situations where the company must consider deviations from prescribed policies. Describes three such situations: large exposure to the Canadian dollar with adverse accounting consequences, GM's exposure to the Argentinean currency when devaluation is widely anticipated, and the impact of the depreciation of the Japanese yen to the dollar. To obtain executable spreadsheets (courseware), please contact our Customer Service Department at [email protected]

Traces the economic development of the United States from 1790 to 1857, focusing especially on the struggle between free traders and protectionists over federal tariff policy. Devotes considerable attention to the nation's political system, its evolving common law, basic factors of production (land, labor, and capital), and key sectors (agriculture, manufacturing, transportation, etc.).

Over three decades, Oscar de la Renta (ODLR) had established itself as one of the premier luxury brands in America. Its mainstay business had always been producing and marketing high-priced, couture/ready-to-wear luxury goods. Now, in September 2003, it faced a series of critical strategic decisions. First, how should it grow the business while preserving its luxury brand? Should it diversify into the moderately priced segment of apparel and unserved customer segments like the Hispanic market, where it had a strong brand appeal but negligible presence? Second, as a family-owned company, how could it effectively compete against increasingly larger, publicly financed, luxury goods conglomerates? And, how might de la Renta, the company's founder and chief designer since inception and now 71 years old, effectively prepare the company for the future? Describes the company's business and highlights these key tensions: expanding the scope of a luxury brand, pursuing licensing or organic growth strategies, and competing against publicly owned conglomerates. Includes color exhibits.

The (A) case (1739.0) focuses on the early years of the program in the 1990s, providing a definitive account--based on interviews with those who drafted the authorizing legislation--on how the program was conceived and structured and how it gained Congressional approval, including the political reasons for directing some AmeriCorps grants to large, multi-state "national direct" organizations such as Teach for America, and others to small, local organizations funded through state "service commissions". Ultimately, the case narrows its focus to the public financial management question about how to fund a special trust fund from which education awards for AmeriCorps members are paid. The case raises the question of how to fund the National Service Education Trustthe mismanagement of which comes to spark the 2002-2003 budget crisis affecting the entire programin a way that is both prudential but not overly expensive. In combination with the beginning the of the (B) case, this case can be used to discuss estimation models for funding a wide variety of public benefits, including such analogues as public pension systems such as the US social security system. HKS Case Number 1739.0

Global Transfer of Best Practices Carlos Camarero led Rank Xerox's Wave C initiative. Wave I (to improve revenues) was successful and Wave II (to redefine sales processes) was disappointing. Carlos prepared to discuss with Rank Xerox's Managing Directior (Bernard Fournier) Wave I's success, Wave II's failure, and lessons learned about best-practice transfer.

Condensed version of INS597.